Wedoany.com Report-Oct. 13, Ludwigshafen, Germany, and Washington DC: BASF has signed a binding agreement with funds managed by global investment firm Carlyle, in partnership with Qatar Investment Authority (QIA), to divest its automotive OEM coatings, automotive refinish coatings, and surface treatment businesses. The enterprise value of the transaction is €7.7 billion (approx USD 9 billion), and subject to regulatory approvals, it is expected to close in Q2 2026. Combined with the previously completed sale of BASF’s decorative paints business, the move values BASF’s entire Coatings division at €8.7 billion, with an implied 2024 EV/EBITDA multiple of around 13x, highlighting a key step in executing BASF’s Winning Ways strategy. BASF will retain a 40% equity stake and receive pre-tax cash proceeds of approx. €5.8 billion at closing.

BASF Coatings is a global leader in the development, production, and marketing of automotive OEM and refinish coatings, as well as applied surface treatments for metal, plastic, and glass substrates across multiple industries. The business operates in Europe, North America, South America, and Asia Pacific, generating approx €3.8 billion in sales in 2024.

Under the agreement, Carlyle will support the future growth of the coatings business by investing in its commercial capabilities, innovation pipeline, and organizational structure, enhancing customer focus. Carlyle brings extensive experience in industrial and chemical carve-outs, including previous investments in Axalta, Atotech, and Nouryon.

Dr. Markus Kamieth, Chairman of BASF SE, said: “We are delighted to partner with Carlyle, whose sector expertise, carve-out capabilities, and collaborative approach will help position BASF Coatings for long-term success. By retaining an equity stake, we are showing our belief in Coatings’ future value creation and upside potential. The passion, expertise, and customer focus of our Coatings team is what makes this business outstanding.”

Anup Kothari, Executive Director at BASF SE responsible for the Coatings division, added: “The transaction announced today opens a new chapter of opportunity for BASF Coatings, building on today’s success and shaping an even stronger future.”

From Carlyle, Martin Sumner, Global Head of Industrials, and Tanaka Maswoswe, Partner, commented: “BASF Coatings is an exceptional platform with leading technologies, a world-class management team, strong customer partnerships, and a truly global footprint. We see compelling opportunities to leverage our global platform to support the business becoming an established independent leader. This transaction exemplifies Carlyle’s ability to execute complex carve-outs in partnership with leading global corporates.”

Mohammed Al-Sowaidi, CEO of QIA, said: “QIA is pleased to partner with Carlyle to support the next phase of BASF Coatings’ continued growth. This investment aligns with QIA’s approach of investing in industry leaders and is testament to our belief in the long-term resilience of German businesses.”

Throughout the transaction, business continuity for customers will be ensured, and employee representatives will be involved in accordance with legal requirements and local practices.

This partnership underscores BASF’s strategy to unlock value in standalone businesses, while positioning Coatings for global growth with experienced investors and maintaining operational stability for customers and employees.